Chivas Pre-Tax Losses Up Sharply

[John]

Chivas Brothers, one of the main subsidiaries of French alcoholic drink giant Pernod Ricard, plunged to heavy losses in the year to June 30, 2009, according to its latest annual report and accounts, just released by Companies House.

In their report, the directors said the company's sales volume for its strategic whisky brands Chivas Regal and The Glenlivet had been 11.9% below budgeted levels.

For non-strategic brands - among them the Clan Campbell, Aberlour, 100 Pipers and Royal Salute whiskies - sales were 4% below budget.

Turnover for the year was 6.8% ahead of budget, however, mainly thanks to favourable currency effects.

Accounts show that Chivas Brothers, led by chief executive Christian Porta, made pre-tax losses of £65.15million for the year, sharply up on the £6.09million losses reported the year before.

Turnover for the period was £451.25million compared with £396.83million the previous year.

The Paisley-based company was profitable to the tune of £167.12million at the operating level, up from £112.84million a year earlier, but a steep increase in interest payable to other group companies dragged it to pre-tax losses.

Accounts show interest payable amounted to £270.34million.

The previous year, interest payable had also been high, at £149.77million.

A spokesman for the company said: "The results of the Chivas Brothers Scotch whisky and gin business are split across a number of separate UK legal entities within the Pernod Ricard group.

"As a result, the statutory accounts of Chivas Brothers Limited on a standalone basis do not fully reflect the financial performance of the business in the quoted year."?

The accounts also show that Chivas Brothers' unnamed highest-paid director received emoluments of £765,000 during the year, up from the £746,000 paid out the year before.

John

Source: Press & Journal